A.M. Best Co. avowed the Issuer Credit Rating (ICR) of "bbb" of
Global Indemnity plc ( GBLI ). Concurrently,
the rating agency reiterated the financial strength rating (FSR) of
A (Excellent) and ICR of "a" of Wind River Reinsurance Company,
Ltd. and its U.S. subsidiaries. Wind River is the subsidiary of
Global Indemnity.GLOBAL INDEMNTY (GBLI): Free Stock Analysis
ReportHOMEOWNERS CHCE (HCI): Free Stock Analysis
ReportMONTPELIER RE (MRH): Free Stock Analysis ReportPLATINUM UNDRWT (PTP): Free Stock Analysis
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Additionally, A.M. Best reiterated the indicative ratings of "bbb"
on senior unsecured debt, "bbb-" on subordinated unsecured debt and
"bb+" on preferred stock of Global Indemnity.
All the ratings carry a stable outlook.
The rating affirmations came on the back of continued improved
operational performances, diverse array of specialty product
offerings in the United States and reinsurance in Bermuda and
However, a weak performance from specialty insurance operations in
the United States and continued low interest rate environment dwarf
Nevertheless, solid performances from Wind River Re outperforming
industry, sustained sturdy risk-adjusted capitalization, stabilized
reserves coupled with the ability to achieve targets might drive
Nonetheless, the ratings will be subject to downgrade if
risk-adjusted capitalization erodes, operating results deteriorates
or reserves fall.
Rating affirmations or upgrades from credit rating agencies play
an important part in retaining investor confidence on the stock as
well as maintaining credit worthiness in the market. Rating
downgrades, therefore, adversely affect the business, apart from
increasing the costs of future debt issuances. We believe that
strong ratings will help Global Indemnity retain investor
confidence and help it write more businesses going forward, thereby
Global Indemnity carries a Zacks Rank #3 (Hold). Property and
casualty insurers HCI Group, Inc . ( HCI ),
Montpelier Re Holdings Ltd . ( MRH ) and
Platinum Underwriters Holdings Ltd . ( PTP ) among others,
carry a Zacks Rank #1(Strong Buy) and appear impressive.